From the ForexLive glossary:
- The Beige Book is a report published by the Federal Reserve (Fed) eight times a year, that provides an overview of economic conditions in each of the Fed’s twelve districts.
- The report is compiled using information from the Fed’s business contacts, economists, and other experts, and covers a wide range of topics including employment, wages, prices, and consumer spending.
- The Beige Book is used by the Fed to help inform its monetary policy decisions, and it is also closely watched by economists, investors, and businesses.
- The report is unique in that it provides a regional perspective on the economy, rather than just a national one. It’s called “beige” because of the color of its cover.
- The report is released two weeks before the Federal Open Market Committee (FOMC) meeting, and it’s widely used by market participants as a source of information to anticipate the Fed’s monetary policy.
The latest one dropped on Wednesday US time:
Check out that link for the summary, though when the report finds growth as rising at a “slight to modest pace,” with five of the 12 Fed districts seeing“flat or declining activity” it’s a nod to the rate cut that is not too far off.
Although, there may be a hurdle to overcome:
If I was Powell I’d cut in July, on a middle-finger basis, but that’s probably just me. The worst that can happen is the new guy fires him and he saunters into a 7 figure contract at an investment bank.
This article was written by Eamonn Sheridan at www.forexlive.com. Source